This document provides an overview of a 2-day seminar on effective collective bargaining and negotiation skills. It introduces the seminar facilitator, Dr. Balakrishnan Muniapan, and outlines the program objectives, methodology, and topics to be covered. The seminar aims to help participants understand collective bargaining frameworks, develop negotiation strategies and skills, and handle stressful negotiations positively. It will incorporate lectures, group discussions, presentations, role plays and case studies. Key topics include industrial relations systems, psychological contracts, collective bargaining processes, and negotiation skills.
Concept of Industrial Relations Industrial Relationsmanumelwin
The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’.
“Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”.
Industrial Relations Systems - Industrial Relationsmanumelwin
An industrial relations system consists of the whole gamut of relationships between employees and employees and employers which are managed by the means of conflict and cooperation.
Industrial Relations and Trade Unions
Concept of Industrial Relations - Factors affecting industrial
relations, the importance of Industrial Relations, Collective
bargaining;
International Labour Organisation: Genesis, development and
dimensions, aims, and objectives, Organs of the International
Labour Organisation; Role of the Trade Unions in Modern
Industrial Society of India - Trade Union of Employers and
Workers, their forms and types in India.
introduction to trade unions
trade unions characteristics
objectives of trade unions
how trade unions are financed
how trade unions recruits its members
why employees join trade unions
functions of trade unions
trade union structure
Weakness/challenges/problems facing trade unions
Measures to strengthen trade unions
Advantages of trade unions to workers, employeer and society
criticism of trade unions by employer
Employee-employer relationship, discipline management and grievance handling Souman Guha
Abstract
Employee-employer relationship, discipline management and grievance handling are inseparable parts of Human Resource Management. Day to day, a HR manger has to face thousands of issues in an organization regardless of its size. Be it a large corporation or a small privately-owned firm, a strong employee-employer relationship paves the way to profitability and success. This paper focuses on the issues of Employee and employee relationship, how to achieve it and finding out the impediments in the way to strong relationship, and also emphasizing on the process of CBA election and discipline management of an organization. This paper tries to compare different grievance procedures that are being practiced worldwide and looking for the best between ADR versus Legal dispute settlements. Using secondary data and observations from the very practical perspective of Bangladesh, this paper will enable understanding of employee-employer relationship, discipline management and grievance handling.
Concept of Industrial Relations Industrial Relationsmanumelwin
The term ‘Industrial Relations’ comprises of two terms: ‘Industry’ and ‘Relations’.
“Industry” refers to “any productive activity in which an individual (or a group of individuals) is (are) engaged”.
Industrial Relations Systems - Industrial Relationsmanumelwin
An industrial relations system consists of the whole gamut of relationships between employees and employees and employers which are managed by the means of conflict and cooperation.
Industrial Relations and Trade Unions
Concept of Industrial Relations - Factors affecting industrial
relations, the importance of Industrial Relations, Collective
bargaining;
International Labour Organisation: Genesis, development and
dimensions, aims, and objectives, Organs of the International
Labour Organisation; Role of the Trade Unions in Modern
Industrial Society of India - Trade Union of Employers and
Workers, their forms and types in India.
introduction to trade unions
trade unions characteristics
objectives of trade unions
how trade unions are financed
how trade unions recruits its members
why employees join trade unions
functions of trade unions
trade union structure
Weakness/challenges/problems facing trade unions
Measures to strengthen trade unions
Advantages of trade unions to workers, employeer and society
criticism of trade unions by employer
Employee-employer relationship, discipline management and grievance handling Souman Guha
Abstract
Employee-employer relationship, discipline management and grievance handling are inseparable parts of Human Resource Management. Day to day, a HR manger has to face thousands of issues in an organization regardless of its size. Be it a large corporation or a small privately-owned firm, a strong employee-employer relationship paves the way to profitability and success. This paper focuses on the issues of Employee and employee relationship, how to achieve it and finding out the impediments in the way to strong relationship, and also emphasizing on the process of CBA election and discipline management of an organization. This paper tries to compare different grievance procedures that are being practiced worldwide and looking for the best between ADR versus Legal dispute settlements. Using secondary data and observations from the very practical perspective of Bangladesh, this paper will enable understanding of employee-employer relationship, discipline management and grievance handling.
Move from industrial to employment relations revisedmusyokasaff
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3. INTRODUCTION & ICE BREAKER
Your Name
Your Organization
Your current understanding of
collective bargaining & negotiation &
What do you hope to achieve from
this 2 days seminar?
4. DR. BALAKRISHNAN MUNIAPAN
Born and received early education in Sg Petani, Kedah.
Holds BEcons (UKM), MSc (HRM) (Portsmouth, UK)
CIWT,(ACAP, AUST), DBA (Philippines).
Brings over 18 years of experience from various fields such
as, manufacturing management, corporate training,
consultancy and education.
Presented papers at seminars & international conferences in
several countries in Asia, Australia, Africa & Europe.
Currently based in Kuching, Sarawak with an Australian
branch campus university involved in teaching & research in
HRM. Facilitates international DBA/MBA programs in OB &
HRM.
5. PROGRAM OBJECTIVES
Understand the framework of industrial
relations & collective bargaining in Malaysia;
Plan strategies & tactics for collective
bargaining & negotiation;
Handle stressful negotiation at the bargaining
table with a positive mindset; &
Develop the skills of an effective negotiator.
6. PROGRAM METHODOLOGY
Short lectures, group discussions, presentations,
role play and case studies approach will be used to
enhance your learning experience.
You are encouraged to discuss, contribute & share
from your own knowledge & experience on issues
related to collective bargaining, negotiation &
industrial relations.
This is in accordance with research on adult
learning which shows that a deeper level of learning
occurs when there is active participation on the part
of the participants
7. GROUND RULES FOR LEARNING
Active listening (not just hearing)
Appreciate others viewpoint (diversity)
Off your mobile or in silent mode
Have fun as you LEARN
9. INDUSTRIAL RELATIONS
Industrial relations (IR) is be defined as the study
of relations between employers, employees and
their trade union.
Industrial relations is also known as employee or
labor relations.
However, IR as a separate function in an
organization only exist when the employees are
unionized. Normally employee relations (ER) is the
term used when workers are not members of a
union.
10.
11. FOCUS OF INDUSTRIAL
RELATIONS
laws & rules which impact on the work
environment.
terms & conditions of work.
the process which the rules & terms are
made.
rights of employers & employees.
12. MALAYSIAN INDUSTRIAL
RELATIONS SYSTEM
Malaysian & almost all IR system are tripartite,
i.e., they are made up of three parties.
The parties or the participants in an IR systems
are the employers, employees and the
government.
Rules and regulations on compensation, workers'
right, discipline and the duties and performance of
employees can be made in any of 3 ways –
unilaterally, bilaterally or in a tripartite way.
13.
14. MINISTRY OF HUMAN
RESOURCES
The seven departments in MHR are:-
Department of Labor, Peninsular Malaysia
Department of Labor, Sabah
Department of Labor, Sarawak
Department of Industrial Relations
Department of Trade Unions
Department of Occupational Safety & Health
Department of Manpower
15. MINISTRY OF HUMAN
RESOURCES
Organization which are independent but
reports to the MHR are:-
Social Security Organization.
Employees Provident Fund.
Human Resource Development Fund.
Industrial Court.
16. INDUSTRIAL CONFLICT
Conflict in terms of
divergence interests
between managers &
workers can be seen in
terms of the employers
wish to maximize profits
and employees want higher
wages & better terms &
conditions of service.
Higher wages can only be
paid at the expense of
lowering profits. Thus,
wants of employees &
employees leads to
conflict.
19. GOOD INDUSTRIAL
RELATIONS
Good IR will lead both
parties to work for a
common goal -
increasing growth and
success of the
organization so that its
future is guaranteed &
both profits & wages
can be assured.
20. GOOD INDUSTRIAL
RELATIONS
Outcomes of good IR:
communication
understanding & trust
co-operation
mutual commitment to shared objectives
Good IR arise from managers who
believe that ‘people are the company’s
most important asset’.
21. PSYCHOLOGICAL CONTRACT
• Psychological contract is an unwritten agreement
that sets out what the employers expects from the
employees & what the employees expects from their
employers.
• It consists of mutual expectations & satisfaction of
needs.
• It covers a range of issues, rights & underlying
assumptions about fairness and equity.
23. EMPLOYERS EXPECTATIONS
• Obedience & commitment
• Motivation & loyalty
• Not to abuse goodwill
• To uphold image of the
organization
• To accept the beliefs of the
organization
24. PSYCHOLOGICAL CONTRACT
When either the employers or the
employees expectations are not met
friction, difficulties & unharmonious
relationship will occur.
25. PSYCHOLOGICAL CONTRACT
The extent of matches between employers &
employees expectations will influence the
organization productivity, its profitability, job
satisfaction, loyalty, etc.
Understanding and matching the
psychological contract is essential in creating
and maintaining a harmonious IR in any
organization.
26. PSYCHOLOGICAL CONTRACT
How do you think your organization
has meet your employee’s
expectations?
As leaders what can you do to
increase the level of job satisfactions
of your employees?
27. COLLECTIVE BARGAINING
IRA 1967 defines collective bargaining as
negotiating with a view to conclusion of a
collective agreement.
Collective agreement is an agreement in
writing concluded between an employer or a
trade union of employers on one hand, and a
trade union of workmen on the other relating to
the terms and conditions of employment and
work of workmen or concerning relations
between such parties.
28. COLLECTIVE BARGAINING
For effective collective bargaining, the union
1. Must be recognized by the employer
2. Must have financial strength
3. Members must have solidarity
Registration gives the union the legal right to
exist but recognition means employer accepts
the union as the rightful representative of his
workers.
29. MANAGEMENT PREROGATIVES
Section 13(3) of IRA 1967 states no trade
union of workmen may include for
proposal for collective agreement the
following matters:-
• The promotion by an employer of any
workman from a lower grade or category
to a higher grade or category;
30. MANAGEMENT PREROGATIVES
• The transfer by an employer of a workman
within the organization of employer’s
profession, business, trade or work,
provide that such transfer does not entail
a change to the detriment of a workman in
regard to his terms of employment;
31. MANAGEMENT PREROGATIVES
• Employment by an employer of any person
that he may appoint in the event of a
vacancy arising in his establishment;
• The termination by an employer of services
of a workman by reason of redundancy or
by reason of reorganization of an
employer’s profession, business, trade or
work or the criteria for such termination;
32. MANAGEMENT PREROGATIVES
• The dismissal and reinstatement of a
workman by an employer
• The assignment or allocation by an
employer of duties or specific tasks to a
workman that are consistent or compatible
with terms of his employment
33. CASE STUDY
Kassim has a MBA in HRM is offered the position of Manager – Industrial
Relations at a local manufacturing company. He does well during the
probationary period & is confirmed in his position. Soon after, the
National Union representing companies in his industry, are recognized
to represent the employees. Kassim has never worked with Unions
before and has a hard time negotiating the first CA with the mandate
given by the management. He does little to build rapport with the
Union, who start picketing outside the Company’s premises. Kassim
calls in the Police (who are his good friends), who arrest the Union
leaders for causing public disturbance . The Union had overlooked his
relationship with the local Police & did not seek a permit for picketing.
After 2 days, the Union leaders are released…now they refuse to
proceed with negotiations over the CA & are working to rule.
Production & quality suffers & employee morale falls. The MD calls for
termination of Kassim.
34. COLLECTIVE BARGAINING
PROCESS – 3 PHASES
1. PREPARATION FOR NEGOTIATION
Monitoring the environment and collecting
information
Analyzing market practice & industry norms
Analyzing the union proposals
Determining management’s position
Selecting the bargaining team
Securing top management approval
35. COLLECTIVE BARGAINING
PROCESS – 3 PHASES
2. FACE-TO-FACE BARGAINING
Negotiating with the union
Bargaining strategies
Signing of the collective agreement
36. COLLECTIVE BARGAINING
PROCESS – 3 PHASES
3. ADMINISTRATIVE OF COLLECTIVE
AGREEMENT
Briefing of all management staff
Adjusting compensation & policies
Ensuring compliance from management & union
37. PREPARATION FOR
NEGOTIATION
Monitoring the environment & collecting
information.
Know the employment laws
Know the court awards
Study the current collective agreement
Collective agreements of other organizations
Documentation of experiences in administration of
the agreement
38. PREPARATION FOR
NEGOTIATION
Analyzing market practices & industry
norms
Understand the economic indicators
Learn the practices in other organizations in the
industry & surrounding geographical area
(includes salary & benefits survey)
39. PREPARATION FOR
NEGOTIATION
Analyzing the
union proposals
Compare it with
existing CA
Various clauses
should be analyzed
in detail
40. PREPARATION FOR
NEGOTIATION
Determining Management Position
Evaluate the union demands & determine what are
the realistic clauses
Work out the costing of each demands of the union
Where increments are concerned, IC Award 117/82
– CPI may be used as a guide to what is reasonable
41. PREPARATION FOR
NEGOTIATION
Selecting the bargaining team
Should CEO be in the bargaining team? Why & why
not?
Management team = 3-4 negotiator with a chief
negotiator
What are the criteria for selection?
42. PREPARATION FOR
NEGOTIATION
Securing top management approval
Once the management negotiating team has been
appointed, they should meet out the goals &
strategy for the team
Top management should approve the overall
bargaining goals or give a mandate to the
bargaining team, so that they have a guide to
what they can & cannot offer
43. FACE-TO-FACE BARGAINING
Negotiating with the union
What are the do’s & don’ts of bargaining?
How to avoid deadlock?
Signing of CA – 10 copies to Industrial Court for
cognizance within 1 month of the agreement
44. ADMINISTRATIVE OF COLLECTIVE
AGREEMENT
Briefing of all management staff
Responsibility of the management to ensure all
management staff are familiar with the new
collective agreement
This done through meetings and training sessions
45. ADMINISTRATIVE OF
COLLECTIVE AGREEMENT
Adjusting compensation policies
What is the role of HR?
Ensuring compliance from management &
union
What is the role of HR?
46. NEGOTIATION SKILLS
Negotiation occurs when conflict exists
between groups and both parties are
prepared to seek a resolution through
bargaining.
Negotiation helps to develop mutually
beneficial solutions in situation of conflict.
47. NEGOTIATION SKILLS
Do you consider yourself a negotiator?
What is your strength & weaknesses as a
negotiator?
Find out the your partner’s negotiation
strengths & weaknesses
48. NEGOTIATION – SELF
ASSESSMENT
Increase Your Self-Awareness:
Assess Your Self-Esteem
Assess Your Locus of Control
Assess Your Negotiation Skills
49.
50. FUNDAMENTALS OF NEGOTIATION
8 Pillars of Negotiation Wisdom
1. Be conscious of the difference 5. Be an active listener
between positions and 6. Be conscious of the
interests importance of the
2. Be creative relationship
3. Be fair 7. Be aware of the
BATNAs
4. Be prepared to commit
8. Enhancing negotiations
skills
The Convergence of Corporate & Human
Issues
51. NEGOTIATION MYTHBUSTERS
You don’t have to be in businessman to be a good negotiator.
Negotiating is NOT the same as fighting.
Negotiating effectively is not a privilege of certain people.
You don’t have to have the upper hand to negotiate effectively.
Negotiating is not a time-wasting activity.
Negotiating is not always the sum of clearly defined procedures or
parameters. It is the sum and substance of human give and take.
52. NEGOTIATION & CONFLICT
Ways of Handling Conflict
Competition Compromise
Collaboration
Accommodation
Avoidance
What is your conflict handling style?
53. Conflict Handling Style #1
THE TURTLE
Key Characteristic: DENIAL
Key Response: AVOID
Key Aim: TO WEATHER THE STORM
Favorite Statement: What conflict?
54. Conflict Handling Style #1
THE TURTLE
Refuses to even consider the fact that a conflict
exists and would prefer that others do the same.
Because of this, he refuses to dialogue and
gather information to fix it.
Key Strategies: Flee, avoid, deny, ignore,
withdraw, delay, hope & pray.
Leadership Qualities: Passive & timid, tends to
spiritualize everything.
55. Conflict Handling Style #2
THE SHARK
Key Characteristic: COMPETITION
Key Response: FORCE
Key Aim: TO WIN AT ALL COST
Favorite Statement: It’s my way or no
way.
56. Conflict Handling Style #2
THE SHARK
He is impatient with dialogue and information
gathering and would rather everyone just submits.
Key Strategies: Compete, coerce, control, fight,
outwit, outdo.
Leadership Qualities: Authoritarian, seeks to
maintain the status quo, feels threatened by any act
of defiance and so will quash it all the time.
57. Conflict Handling Style #3 THE
TEDDY BEAR
Key Characteristic: GIVE IN
Key Response: ACCOMODATE
Key Aim: TO KEEP THE PEACE
Favorite Statement: Whatever you say.
58. Conflict Handling Style #3
THE TEDDY BEAR
Interested in other’s approval and would rather
others insist on their way.
Key Strategies: Agree, give in, appease, flatter
Leadership Qualities: Ineffective in any group
discussion because he doesn’t have a solid opinion,
could be easily swayed either way
59. Conflict Handling Style #4 THE
FOX
Key Characteristic: TOLERATE
Key Response: COMPROMISE
Key Aim: GIVE EACH ONE A MEASURE OF
VICTORY
Favorite Statement: Meet me half way.
60. Conflict Handling Style #4
THE FOX
Tolerates the exchange of ideas but finds this
uncomfortable so he would rather bargain quickly.
Key Strategies: Reduce the expectations and Split
the difference
Leadership Qualities: Good negotiator, cautious
but open, urges everyone to speak out but not too
much
61. Conflict Handling Style #5
THE OWL
Key Characteristic: COOPERATION
Key Response: DIALOGUE
Key Aim: COLLABORATION BETWEEN ALL
PARTIES
Favorite Statement: My preference is…But
what is yours?
62. Conflict Handling Style #5
THE OWL
Focuses heavily on information gathering and
always prefers collaboration over compromise.
Key Strategies: Gather information, dialogue openly,
explore alternatives
Leadership Qualities: Focuses on the process, open
to change & growth
63. High Concern for Personal Goals
SHARK: OWL:
Win-Lose Win-Win
Values goal over Values both goal
relationships & relationship
FOX: High
Low
Concern
Win some-Lose some Concern
For Values both but is For
Relationships willing to sacrifice Relationships
certain aspects of either under
certain circumstances
TURTLE: TEDDY BEAR:
Lose-Lose Lose-Win
Low concern for either Values relationships
goal or relationship Over goal
Low Concern for Personal Goals
65. WHICH “ANIMAL” DO YOU HAVE IN
YOUR NEGOTIATING TEAM?
Turtle Shark
Teddy Bear
Fox
Owl
66. COMPLEX NEGOTIATION
ISSUES
In your groups communicate on a
complicated negotiation issues
experienced
Share your experience and the lessons
learnt
Present your group discussions to others
67. CONFIDENCE
“Confidence, like art, never
comes from having all the
answers; it comes from
being open to all the
questions”
-- Earl Gray Stevens
68. TEAM ROLES &
RESPONSIBILITIES
Lead Negotiator
Main Speaker
Only Member permitted to make
Signals
Movement
Recorder
Records Key Arguments
Records Final Agreement
Analyst
Monitors overall team strategy
Monitors other teams strategy
Identifies areas of Common Ground
Monitors Movement
69. TEAM CONTROL
Discipline Decide and Agree the
strategy early on
Self
Team Always keep to the agreed
strategy
Never interrupt the
Lead Negotiator Negotiate through the
Leader
Respect Silence -
NEVER Interrupt Support one another
openly
Portray a United Front
70. PERSONAL CONTROL
Always Be
Polite - It never reduces your argument
Firm - Removes Perceptions of Weakness
Calm - Facilitates Persuasion and
Compromise
Don’t ever take things personally
Be aware of yourself and use your
Emotional Intelligence
71. EMOTIONAL INTELLIGENCE
Definition
The capacity for recognizing our own feelings and those of
others, for motivating ourselves, and for managing emotions
well in ourselves and in our relationships
Uses in during negotiation
Effective and sustainable relationships
Should not be regarded as a ‘soft’ element of negotiation but
as a critical negotiation skill
Maximize input from personnel by treating them well
Change of focus: Technical Skills to People Skills
Development of relationships
72. ARISTOTLE CHALLENGE
“Anyone can be angry—
that is easy. But to be
angry with the right
person, to the right
degree, at the right
time, for the right
purpose, and in the
right way — that is not
easy.”
75. PERSUASION
Persuasion is the art of finding the best
available means influence the behavior or
attitude of another person or group
It may elicit a negative reaction from some
people who would view it as being ‘pushy’
May end up in a win-lose situation where you
win and they lose
77. MELTING RESISTANCE
To Melt Resistance
•Be honest
•Find common ground
•Use humor carefully
•Appreciate what they are already doing
•Give realistic pros and cons
•Ask them to make your case
Try to melt resistance before meetings
78. HANDLING OBJECTIONS
To handle objections raised during the
persuasion process:
Listen to what the objection is
Focus on the issue NOT individuals
Think and evaluate the situation
Act by either:
incorporating some of the contribution
from the other person
Presenting a rationale for why you
disagree
79. OBJECTIONS HANDLING
PROCESS
Listen to and
Understand what the objection is
Transition
Handle and Overcome
the Objection
80. PERSUASIVE BEHAVIOUR
It is important that your behavior supports the
argument that you are putting across:
Use a strong and enthusiastic voice
Speak fluently and without hesitation
Use open questions
Use silences
Have eye contact at least 50% of the time
Hold eye contact for at least 5 seconds at a time
81. PERSONAL CONTROL
Always Be
Polite - It never reduces your argument
Firm - Removes Perceptions of Weakness
Calm - Facilitates Persuasion and
Compromise
Don’t ever take things personally!
82. DEVELOPING STATIMA TO
PERSERVE
Don’t talk too much
Be firm
Stake out issues that are Non-negotiable
Don’t care too much
Keep things moving
Play to your advantage
Stay Focused
83. ROLE PLAY – DEVELOPING
STAMINA
Each one to determine a product or service to
sell. Obtain or sketch the product, or
describe the product or service, or
demonstrate.
Form into teams of 2 persons –Seller &
Prospect.
Seller will attempt to sell the product or
service; Prospect will reject the offer. Both
will use as many of the different styles learnt.
84. PREPARING A STRONG
BATNA
Determining your BATNA (Best Alternative To a
Negotiated Agreement)
Develop a list of actions you might take if no agreement is
reached
Improve the promising ideas and convert them into practical
options
Select the one option that seems best
Factors to be considered
Which alternative is most affordable and feasible?
Which has the most impact in the shortest time?
What are the social costs (if any)?
Consider alternatives available to the other side
86. REASONS WHY SOME
NEGOTIATION FAILS?
Negotiations can be lost by:
Monopolization of the conversation
Lack of knowledge
Over-stated conditions
Lack of confidence
Poor emotional intelligence
87. NEGOTIATION SUCCESS
QUALITIES
The following are qualities that lead to
successful negotiations
– Competitiveness
– Knowledge
– Self drive & determination
– Self reliance
– Persistence
– Energy / stamina
– Positive attitude
88. WHAT MAKES A GOOD
NEGOTIATOR?
Good Negotiators are individuals who develop
themselves to be sensitive and allows:
– Understanding of other people
– Understanding of the organization
– Ability to manage, lead and influence
– Ability to use the most valuable resource that your
organization has –its people
– Generation of above average results in the long term
90. TRADE DISPUTE
When employers and employees or their trade
unions are unable to resolve their differences, an
industrial dispute or trade dispute may said to
exist.
Section 2 of the Industrial Relations Act, 1967
defines a ‘trade dispute’ as follows:
“any dispute between an employer and his workmen
which is connected with the employment or non-
employment of the terms employment or conditions
of work of any such workmen”
91. DISPUTE RESOLUTION
The Industrial Relations Act 1967 recognizes a number of
ways, which can be used to resolve an industrial dispute
peacefully namely direct negotiation, conciliation and
arbitration and it also identifies the techniques or agencies
involved such as grievance procedures, Department of
Industrial Relations and the Industrial Court.
The preamble to the Act states:
“An Act to provide for regulation of the relations between
employers and workmen and heir trade unions and the
prevention and settlement of any differences or disputes
arising from their relationship and generally to deal with trade
dispute and matters arising there from”
92. DISPUTE RESOLUTION
The Act also makes the resolution of trade disputes
as simple as possible. Section 30(5) of the Act
specifies,
“The Court shall act according to equity, good conscience and
substantial merits of the case without regard to
technicalities ad legal form”.
Dato’ Gopal Sri Ram, JCA in Harris Solid State case,
stated as follows:
“Section 30(5) of the Act imposes the duty upon the Industrial
Court to have regard to the substantive merits of the case
rather than technicalities. It also requires the Industrial
Court to decide a case in accordance with equity and good
conscience. Parliament has imposed these solemn duties
upon the Industrial Court in order to give effect to the
policy of democratically elected government to dispense
social justice to the nation’s workforce”.
93. DISPUTE RESOLUTION
The Act also gives wide powers to the Court to
settle a trade dispute. Section 30(6) states:
“In making its award, the Court shall not be restricted to the
specific relief claimed by the parties or to the demands
made by the parties in the course of the dispute or in the
reference to it under section 20(3) but may include in the
award any matter or thing which it thinks necessary or
expedient for the purpose of settling the trade dispute or
the reference to it under section 20(3)”
94. DIRECT NEGOTIATION
Direct negotiation is the ideal method for settling a dispute is
where both employer and employee come together for
discussion until a satisfactory compromise is reached.
Voluntary negotiations are encouraged in the Industrial
Relations Act.
“Both sides must always leave their channels of communication open;
this is one of the basic requirement of a good industrial relations
that parties must adhere to” (Industrial Court Award – No.328 of
1986)
“We sense a lack of communication between the company and the union
but we do not know who is to blame for this. Like in marriage
management and employees can only be productive and look after
each other’s welfare if they have a good taking relationship”
(Industrial Court Award – No 10 of 1988)
95. CONCILIATION
If however, direct negotiation between the parties reaches a
deadlock, any party to the trade dispute may report it to the
Director General of Industrial Relations (DGIR) for
conciliation.
Alternatively, even if both parties do not report the dispute
the DGIR may in public interest take the role of conciliator.
It must be remembered that at the conciliation stage, the
DGIR is a not empowered with any legal force and parties
concerned are not legally bound to abide by his decisions.
On average, 70 –80% of trade disputes are settled annually
through conciliation.
96. CONCILIATION
“Should they (employer & employee) encounter any industrial
problem, they should seek the guidance and advice of the
Industrial Relations Division of the Ministry of Labour and
Manpower (known known as Ministry of Human Resources)
to overcome them, for in any business undertaking,
industrial peace is vital to progress and development” –
Industrial Court Award – No.4 of 1982
“The statutory function of the Director General of Industrial
Relations is to conciliate between the parties and, if he fails
to bring about a settlement, to recommend to the Minister
which cases merit reference to the Industrial Court and
which cases do not” - Industrial Court Award – No. 85 of
1987
97. COLLECTIVE BARGAINING IN
ACTION
Kinta Rubber Works Sdn Bhd in Ipoh & National Union of
Employees in Companies Manufacturing Rubber Products were
unable to agree on terms & conditions to be included in their
10th CA. The dispute was not settled at conciliation and was
referred to Industrial Court. At this stage, items which were
still not agreed upon included medical benefits, bonus,
retirement benefits, retrenchment benefits, allowances, salary
structure & salary adjustment. When the matter was called for
hearing at the Court in March 2006, the parties informed the
Court that they had reached an agreement on all of the
disputed items & presented their agreement for a Consent
Award.
98. ARBITRATION
Where the Industrial Relations department conciliates but
there is still a deadlock, the dispute can then be referred to
the Industrial Court for arbitration
This decision to refer to the Industrial Court may be made
by the Minister of Human Resources at the joint request in
writing of both parties or the Minister can himself refer the
dispute to the Court
The Minister, will exercise his discretionary powers to refer
the dispute to the Industrial Court or otherwise. When a
reference is made to Industrial Court, the court will
adjudicate the dispute
In arbitration, decisions of the Industrial Court are binding
on both parties.
100. INDUSTRIAL ACTION - UNIONS
Strike: withdrawal of labour
Go Slow: work on rules
Bans: refusing particular jobs or refusal to
work with certain people
Boycott: preventing others from doing business
with the company
Picket: preventing employees, customers &
suppliers from entering the work site
Industrial tribunal: union seeks assistance of
an industrial tribunal eg. Industrial Relations
Department
101. INDUSTRIAL ACTION
In April 2007, 120 members of the National Union of Tobacco
Workers picketed in front of JT International Tobacco Sdn
Bhd in Shah Alam, Selangor over the company’s refusal to
start negotiating a new collective agreement, the previous
one having expired in January 2006.
In October 2006, TM Bhd workers picketed in 3 locations,
including Menara Telekom in Bangsar, Kuala Lumpur. They
were protesting the outsourcing of certain departments,
including the company’s call centres to another company.
Employees concerned had been given option papers to join
this company although the trade union was opposing the
change until such time as the terms of transfer of the
employees to the company were clarified.
102. CASE STUDY
Rahim is the General Secretary of N.U.C.W. and a clerk with
Ajanta Sdn Bhd in KL. On the 30th July 2003, he was to clear
all the vouchers for claims made by officers in the company.
At 10.00 a.m. he came to know that his members in Alka
Trading Co. in Kedah had gone strike over the suspension of
a storekeeper. Rahim applied for leave to go to Kedah but
the Manager, Abdul Rahman rejected his application as the
claims had to be paid off by the 31st. However Rahim felt his
responsibility was with his union members in Alka Trading
Co. and left for Kedah. He returned to work on the 4th August
2003 having settled the strike but was given a suspension
letter in which he was asked to show cause why his services
should not be terminated for having stayed away from work
without permission for more than 2 days.
103. CASE STUDY
Nathan called the meeting to silence. ‘Gentlemen’, he said, “it’s
time for action. We have been patient but management is
only taking advantage of us. Our union representatives have
met with the company 5 times already and there’s been
almost no progress towards signing a CA. I propose we start
to picket every day at lunch & for an hour after work until the
management come to their senses & agree to our demands.”
Kamil stood up & said, “ I second that motion. After all, we are
only asking for 1 more day annual holiday & increase in our
basic salary of RM 50.00 per month. That’s peanuts.
Workers at Golden Corporation get far more than we do.”
One by one the workers present stated agreement. They
were in the mood to call a strike but leaders from the
national union advised them to be patient.
104. INDUSTRIAL ACTION -
MANAGEMENT
Lockout: employees not to enter workplace
Injunction: civil court order to stop union from
taking industrial action
Strike breakers: company uses non-union
labour to fill jobs of striking union members
Employer associations: company uses
employer’s association to exert influence on
union
Industrial tribunal: company seeks assistance
of an industrial tribunal eg. Industrial
Relations Department
105. LOSSES OF INDUSTRIAL
ACTION
The union:
loss of wages
loss of goodwill with management
loss of public image
loss of security of a united employee front
The management:
loss of profits or market position
loss of status with other management, board
of directors or shareholders
loss of public image
106. HARMONIOUS INDUSTRIAL
RELATIONS (IR)
IR, is essentially ‘human relations’ and understanding the
‘humane’ and ‘human’ aspect of management is the first step in
creating a harmonious IR
The employers should adopt participative management or
participative decision-making as the authoritarian or directive
management styles is not suitable in many organizations in the
current business environment.
Handling of employee grievance with an effective grievance
handling machinery is must to resolve disputes at the supervisory
level. A grievance is like a small fire, the earlier you put it out is
better.
Effective HRM strategies in terms of employee selection,
induction, training and development, performance management
and appraisal, compensation management and employee
relations are essential in creating a cooperative and harmonious
IR.
107. CONCLUSION
You can foul up on almost anything, you will
get another chance. But, if you screw up
even a little bit on ‘people management’
(industrial relations) you are gone. That’s it.
Top performer or not.
Productivity Through People – The Missing
Link by V.T. Shanbhag (cited in Dcruz, 1999)
108. PROGRAM OBJECTIVES
Understand the framework of industrial
relations & collective bargaining in Malaysia;
Plan strategies & tactics for collective
bargaining & negotiation;
Handle stressful negotiation at the bargaining
table with a positive mindset; &
Develop the skills of an effective negotiator.